This paper examines the impact of organized crime on the regional distribution of foreigndirect investment (FDI) inflows into Italy. The incidence of crime has been calculatedconsidering the number of complaints for different crimes. The analysis shows how thecorrelation between organized crime is both negative and significant. This relationshipappears strong even when a financial investment incentives indicator is included into theregressions. Furthermore, such a correlation between crime and FDI seems to be valid onlyfor certain crimes, traditionally related to the presence of organized crime of the Mafia type.Although our analysis shows that organized crime is, in itself, a disincentive for investment, italso suggests that certain levels of crime can be perceived by foreign investors as a signal ofan unfavorable business climate.
Organized crime and foreign direct investment: The Italian case
DANIELE V
;
2012-01-01
Abstract
This paper examines the impact of organized crime on the regional distribution of foreigndirect investment (FDI) inflows into Italy. The incidence of crime has been calculatedconsidering the number of complaints for different crimes. The analysis shows how thecorrelation between organized crime is both negative and significant. This relationshipappears strong even when a financial investment incentives indicator is included into theregressions. Furthermore, such a correlation between crime and FDI seems to be valid onlyfor certain crimes, traditionally related to the presence of organized crime of the Mafia type.Although our analysis shows that organized crime is, in itself, a disincentive for investment, italso suggests that certain levels of crime can be perceived by foreign investors as a signal ofan unfavorable business climate.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
